156 The Financial Times Guide to Corporate Valuation
Multiple-based valuation of Mobitronics
We have now conducted a full DCF valuation of Mobitronics and checked
the underlying assumptions for reasonableness. A different and comple-
mentary approach to valuing Mobitronics would be to use fundamental
and/or relative multiples to estimate the value of the company. As men-
tioned in previous chapters, multiple valuations can be used as a way
to quickly get a rough valuation estimate for a company to see if it is
worthwhile to engage in more complex valuations, such as a DCF analy-
sis. Alternatively, it can be done to complement a standalone valuation
model, such as a DCF model, to check the reasonableness of the final
valuation